The Housing Bubble
By The Sharp Edge
It turns out that moving from the city to a home in the country is harder than I thought. For the past several months, I’ve been on a home shopping journey, but the problem is there aren’t many homes for sale. I wondered if this was a trend across the country – and of course it is. Housing inventory has hit record lows in several areas while demand is soaring, driving prices to astronomical heights. In this video, we go over some of the alarming trends and ask – Are we in a housing bubble? If so, when will it burst?
Video by The Speaker and The Sharp Edge.
We are definitely in a housing bubble. We are selling one of our homes in a small rural county, we have been living here for 24 years, purchased a year ago, a $70,000 gain which is unheard of here in my humble opinion. Rent is also ridiculous here, but I don’t want to be a landlord, don’t want to mess with virus regs, and don’t believe the rental nor the purchase prices here will last. The pendulum will swing the other way eventually. Supply and demand baby, your market forces in action! Good luck!
There are more 30 year olds entering the housing market with a spike for next 2 years. Supply is down and demand will remain up for next 2 years. Look at birth rates and age brackets and there you will find the why behind the shortage. https://event.webinarjam.com/login/no01gtqf7wanwhgg4tx
We were in forbearance due to the Covid shutdown and recently came off of it. I am not sure you know that those of us with good mortgage payment records are given the option of placing the unpaid mortgage payment to the back end of the loan. Selling your house or losing it when forbearance is lifted isn’t the only option available.
Yes, that’s correct. I stated that in our podcast today. It can be put on the back end to be paid in full when a person goes to sell their home. Unfortunately, for many coming off it, they will struggle to begin payments again, or if they try to sell after the real estate bubble we are in and prices are driven way down, that may be a big chunk to have to pay.
We sold our home in Texas. First day on the market, first viewer. We were shocked
Victoria De Vore
I thought it was people moving cash asset onto real estate or physical other assets, gold/silver etc. In AZ we have a hot market and investers are like sharks! Total harassment without even listing my homes, daily!
All I can say with absolute certainty is to get out of the city!
It doesn’t matter where you live or what you do for a living. If you live in a city, move to a small town or to the country.
We have 2 homes with no mortgage. We would like to sell one but with the threat of the collapse of the dollar and digital currency we have no clue what to do with the momey we would make from the sale of the house. Those dollars may well be worthless while the property would remain an asset. We are already diversified so we are thinking of just holding on to the property. It is all a crap shoot at this point.
I can understand that, since you have no mortgage, so long as you live in an area you wish to stay in. That’s great!
Especially if you have kids! God be with you Corey.
We left the Napa Valley 8 months ago… Sold our house of 28 years, and were able to pay cash for 6.2 acres and 3000 sq ft for a place in a small community in the mountains of Idaho. We hit it just right. We are both retired with 2 teenage sons. The community we found is amazing and the boys have been in school, in person, since August. We have a senior graduating this year and unlike his former school… he has been involved in all NORMAL activities. We just attended our youngest’s spring concert. We. Are. Free. CURRENTLY. Sadly, inventory has diminished within 3 months of our move. We are truly blessed. We knew that we had to get out of California A.S.A.P. no matter what happened with the election. We left friends and family behind but find they have Stockholm Syndrome. All must remain vigilant regardless of where they live. We must hold our politicians feet to the fire. They must not “infringe” for any reason.
That’s awesome. I’m so glad it worked out for you and your family!
We’re in a similar situation, but with one residential and one commercial property. We’ve decided to sell both and consolidate our dollars into one residential property. Good luck!
Same in the middle of NC. HORDS of New England people are flocking here and I can only pray they are not going to vote what they flee from. (like that matters until voting is FIXED!) ZERO inventory unless you are a millionaire. Be wary of local Mayors that are also Real Estate Agents. Here, they swindle the farmers. I used to live in what people called “redneck ville”. 1 farmer sold 300 acres via the mayor, and BOOM, 300 cookie cutter houses in Nazi style HOA hood a stone’s throw from me. I could puke. Land hasn’t been this expensive in 20 years. People have no where to go if they sell. It’s been stagnant with zero inventory for a couple months now. New property valuations hit and are hugely inflated, even piece of crap homes with zero upgrades, which in turn spikes the property taxes. (Schools just now back 2 days per week, so where’s all that new tax money going!) I am disgusted. We have been back to the “heartbeat & a paystub” no income verification shark loaning mortgages. Just burst already because this is sickening. We all know where this is headed!
My husband and I are owner/brokers of a small Real Estate firm in Michigan. I have been licensed since 1989. When I first started selling homes, the interest rates were 10% and you had to have 20% a down payment. The market was stable, neither a buyers or sellers market. Then along comes Fannie Mae and the mantra of everyone should own a home; “the American Dream”. This is a fallacy, as we found out in 2006, when it started to crumble. The banks predatory lending was the gas on the fire. Sub par credit buyers who borrowed their down payment from one lender and their primary lender scooped up the rest. I always tried to council my married buyers to be sure their mortgage payment could be paid by one income. I know many of those loan applications were fraudulent. I know from my years of experience that this next crisis will be counted as the worst in history. I would encourage everyone to pay down or payoff your mortgage as quickly as possible. Don’t ever think the government is on your side, they will crush anyone in their way. Pray for our country everyday.
It is not a housing bubble. It is a lack of confidence in government. There is obvious fiscal and policy mismanagement… and the fact that they are admitting that they intend to impose a “great re-set” by shutting down all small business economic activity, in order to “build back better” The governments are in the process of completely destroying the currencies so they can bring in a New World Order – one world currency, one world religion and one world government.
It is not a housing bubble. It is a move to preserve wealth by putting money into tangible assets that may retain value. People are leaving the cities because of unaffordability and they sense the unrest that is inevitable. This is a lack of confidence in government (lawlessness) just like every other time a great empire fell.
The same thing is happening here in Utah. The problem I am seeing in my town, that has almost tripled in the last few years, is city folk are moving into rural areas then wanting to turn it into what they left. The orchards are disappearing, traffic is getting ridiculous and nothing but high density, cheap crap is being built. I understand the need to get out of the cities but at what cost. Just in the last few years our property taxes have doubled. Utah’s governor has just declared a state of emergency worried about drought so don’t think moving out to the country is the answer. People need to fix what they have allowed to be broken in what they are leaving.
We find ourselves in the same situation as you. Although we have planned for years to sell our suburban home and move to the country upon my husband’s retirement next year, we now find those rural homes nowhere near as affordable as they were when we first started evaluating areas. I only wish we would have had the resources to buy even a year ago.
As of now, I am not sure it is wise to buy during the “frenzy”. History indicates things should settle within a year or two, and we are prepared to sell high and take a year traveling the country in an RV. However, as your video suggests, the government is very likely setting us up for an economic “catastrophe” in order to instigate the digital currency. In this case, those without property are basically screwed.
Unless the masses wake up soon, I think we’re all screwed. And you are totally right: exit the cities as quickly as possible, homeschool your kids, and get involved in your local political bodies to protect any semblance of your American way of life. We are absolutely under attack by adversaries, both foreign AND more dangerously, domestic.